Generator interconnection, the procedure allowing power plants including large solar arrays, wind farms, and utility-scale batteries to link with the electrical grid, remains among the chief obstacles to project advancement.

Although some regions of the United States have seen gradual progress since the Federal Energy Regulatory Commission (FERC) issued Order No. 2023 three years earlier, complex, tangled, and occasionally outdated rules still block electrons from reaching consumers amid surging electricity needs. Grid operators have achieved real gains in cutting interconnection queue backlogs and refining planning methods, yet major issues persist, according to a fresh progress report from Grid Strategies and The Brattle Group, prepared for Advanced Energy United, which reviews how grid operators have advanced since a prior 2024 evaluation.

On this episode of the Factor This Policycast, hosted by Factor This content director Paul Gerke and captured live-to-tape at the 2026 Infocast Transmission and Interconnection Summit, Caitlin Marquis, managing director at Advanced Energy United, and Rob Gramlich, president of Grid Strategies, describe how each major regional transmission organization (RTO) and independent system operator (ISO) is handling generator interconnection reform, covering the nation and noting advances in PJM, ERCOT, SPP, MISO, CAISO, ISO-NE, and NYISO. Marquis and Gramlich also offer policy recommendations and examine the recent show-cause orders released by FERC to each of the six regional grid operators under its authority, instructing them to defend or update the rules on how large energy users, such as data centers, connect to the electric grid.

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In This Episode

RTOs nationwide are directing major attention and resources toward better management of the interconnection process, such as adding staff, upgrading project management tools, using automation, boosting transparency, and enhancing coordination with transmission owners and interconnection customers. Certain regions have gone further than FERC Order No. 2023 requires, including Southwest Power Pool (SPP), which drew notable praise at the Infocast event for its Consolidated Planning Process (CPP), a strong approach to achieve a more efficient, quicker, and more reliable interconnection process.

In numerous areas, however, reforms have moved slowly, delays have occurred often, project withdrawal rates stay elevated, post-interconnection delays continue and lack clarity, and fast-track options have mainly helped expensive thermal-generation projects. Project developers (interconnection customers) still typically encounter uncertainty about both the expense and the schedule for grid connection.

What FERC show-cause orders truly signify

"When I worked for the FERC chairman, a full show cause order carried real weight," said Grid Strategies' Gramlich on the podcast. "It represented firm, decisive action. It is notable that all five commissioners, across party lines, are prepared to apply their authority in a direct manner, though not an overly forceful one."

"Nationwide rulemaking takes longer. It requires the full notice-and-comment process, which extends the timeline," he continued. "I do not believe FERC penalizes the RTOs or limits profits, since they lack profits, but RTOs generally follow FERC direction. Ultimately, FERC can establish the tariff rules clearly, and the RTOs must comply."

Advances in PJM and promise in SPP

"They completed a four-year shift to a cluster study process; the timing proved difficult for a region facing rapid load growth while pausing new interconnection requests," said Marquis of PJM Interconnection. "They have begun reviewing their first new cluster, an enormous one, and have projected a one- to two-year timeline. The central question for PJM now is whether they can meet that one- to two-year target with this new cluster, given its scale."

"The CPP stands for Consolidated Planning Process, which neatly captures its purpose," Marquis noted when describing Southwest Power Pool's new approach, which received strong interest at the Infocast event. "It merges the transmission planning process with the generator interconnection process, addressing multiple problems together. What makes it compelling is its effort to tackle root causes in the generator interconnection process, such as insufficient transmission capacity and uncertainty over cost and timeline, all through this single method. The mix of excitement and caution stems from the scale of the task, so successful implementation will prove critical."

Policy recommendations for grid operators

The report from Advanced Energy United, Brattle Group, and Grid Strategies presents several policy solutions for better generator interconnection, also covered on the podcast. They include:

Proactively planning capacity and prioritizing the most ready interconnection requests with an entry fee.
Developing or refining processes for replacing existing plants and using available system capacity immediately.
Selecting the most cost-effective options to address reliability violations.
Applying automation to speed up interconnection studies.
Enhancing reporting on the post-generator interconnection agreement transmission construction phase.